Dexcom (NSDQ:DXCM) shares are up more than 13% today — a day after Q2 results that topped the consensus forecast.
The San Diego-based continuous glucose monitor developer also announced continued clinical and regulatory progress with its next-gen G7, though the timing of a U.S. G7 release is still an open question.
Dexcom posted profits of $62.9 million, or 63¢ per share, on sales of $595.1 million for the three months ended June 30, 2021, for a 35.9% bottom-line gain on sales growth of 31.7%.
Adjusted to exclude one-time items, earnings per share were 76¢, 31¢ ahead of Wall Street, where analysts were looking for sales of $551.3 million.
“Dexcom’s second-quarter performance was characterized by strong financial results and the continued advancement of our key strategic initiatives,” Dexcom CEO Kevin Sayer said in a news release. “Our underlying momentum led to the increased revenue and margin guidance that we reported today and leaves us increasingly excited as we head into the second half of 2021.”
Dexcom’s biggest storyline is the expected launch of its next-generation G7 device. It has filed for CE mark and expects a European launch later this year, but news has been quiet regarding FDA approval and a U.S. launch.
In the company’s earnings call, transcribed by SeekingAlpha, Sayer pointed out that the company is deliberate about what it discloses and will offer more on the U.S. regulatory process down the line.
“We will make sure that we deliver that file in a very pristine manner,” Sayer said. “We hear a lot of things about FDA delays and things of that nature. We don’t want to create delays, it’s been our experience over time, and we deliver what the FDA expects, they move very quickly and they’re very cooperative with us. We have no reason to believe the file we’re preparing isn’t going to meet those expectations, or moving along those lines.
“So again, with the CE Mark filing, we’re on track for an OUS launch later this year. And we’ll update you more on the U.S as time goes on.”
Dexcom said that, based on its strong second quarter, it is increasing its guidance for 2021 revenue, non-GAAP gross profit margin, non-GAAP operating margin and adjusted EBITDA margin. The revenues projected range in between $2.35 billion and $2.4 billion, which would represent growth of between 22% and 25%.
DXCM shares were up more than 13% at $517.24 per share by afternoon trading today. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.4%.
This article originally ran on the evening of Thursday, July 29. Updated July 30 with the next-day stock price.